The Growth of Public Debt and Very Low Savings Rate

The public debt consists of the borrowed by public central authorities , by territorial , administrative and other public entities , from creditors on the internal or external market

In the United States , public debt is also called the national debt gross federal debt or U .S . government debt . The U .S . public debt is consisted of the amount of money owed by the United States government (either central government , federal government , municipal government or local government ) to creditors who hold US debt instruments (treasury

securities , such as : treasury bills , treasury notes , treasury bonds and savings bonds . These treasury securities are issued by the United states Department of the Treasury through the Bureau of the Public Debt , one of its agencies . The Bureau of the Public Debt is responsible for borrowing the necessary amounts of money for the Federal Government . The Bureau of the Public debt is also responsible for the resulting debt and for providing reimbursable services to other Federal agencies

The obtained amounts of money , in the form of treasury securities , may be traded , but it is rarely spent on goods and services . The Government prefers to borrow these amounts of money instead of simply printing it so that the expected increase of inflation due to the increase of national wealth can reach a lower level

The Bureau of the Public Debt considers the Public Debt as divided into two categories : debt held by the public and intragovernmental holdings Intragovernmental debt includes money for government trust funds 9 such as pension plans ) and the debt for social security

William K . Tabb reveals in the first issue of Monthly Review volume 58 that The United States buys 50 percent more than it sells overseas enough to sink any other economy . In another economy , such a deficit would lead to a severe devaluation of the currency , sharply inflating the price of imports and forcing the monetary authorities to push interest rates up considerably . In Tabb 's opinion , There is a clear thread that connects domestic developments in the U .S . income distribution , debt-funded growth , the increased dominance of the rentier capitalists who profit from these developments , and global ambitions and the projection of imperial dominance . It seems that the increase in the upward redistribution of income has determined the investors to search for new opportunities on the external markets , being forced into this direction by the slower growth and saturation of the...